COMMERCIAL NATIONAL FINANCIAL CORPORATION LATROBE, Pa., Oct. 25, 2017 /PRNewswire/ -- Commercial National Financial Corporation (OTC Markets: CNAF) (Company), parent Company of Commercial Bank & Trust of PA, has reported results for the quarter ended September 30, 2017. The Company earned $1,162,000 (or $0.41 per average share outstanding) in the third quarter 2017 compared to $823,000 (or $0.29 per average share outstanding) in the third quarter 2016. The Company earned $3,318,000 (or $1.16 per average share outstanding) for the nine-month period ended September 30, 2017 and $3,280,000 (or $1.15 per average share outstanding) for the nine-month period ended September 30, 2016 which included $1,188,000 in realized net securities gains. No realized net securities gains were generated during 2017's first nine months. Third quarter 2017 earnings represented a 41.19% improvement over those of 2016's third quarter.
The Company's annualized return on average assets and average equity for the quarter ended September 30, 2017 were 1.10% and 7.91%, respectively, compared to 0.90% and 5.59%, respectively, for the quarter ended September 30, 2016. The Company's annualized return on average assets and average equity for the nine-month period ended September 30, 2017 were 1.09% and 7.72%, respectively, compared to 1.15% and 7.57%, respectively, for the nine-month period ended September 30, 2016. Tier one risk-based, total risk-based, leverage and common equity tier one capital ratios for September 30, 2017 were 20.93%, 21.42%, 13.10% and 20.93%, respectively. Third quarter tax equivalent net interest margin was 4.28%. During 2017's first nine months the Company's capital leverage was progressively improved resulting in a material strengthening of ongoing core earnings. The Company's strong capital position, supplemented by recent and reasonably anticipated core earnings, remains supportive of the regular $0.26 quarterly common stock cash dividend payments to shareholders.
Direct and beneficial ownership by executive officers and directors of the Company's outstanding shares totaled 700,192 shares, or 24.47% on September 30, 2017.
As disclosed each year in the Annual Report to Shareholders, on September 30, 2017, the Company employed 100 people in full-time and part-time positions. Forty-seven (47) employees are represented by the United Auto Workers, Local 1799. Of that bargaining unit total, Thirty-five (35) employees are full-time and twelve (12) employees are part-time. The Company has had unionized employees since 1972. In 2013, the Company and the bargaining unit entered into a labor agreement that will expire in February 2019. The Commonwealth of Pennsylvania and the National Labor Relations Board both afford protection to the organized status of pre-existing collective bargaining units. The Company has been advised that bargaining unit status may limit the Company's strategic options relative to those of non-unionized insured depository institutions. The Company continues to consider this as a factor in its strategic and capital management decisions.
The Company operates nine community banking facilities in Greensburg, Hempfield Township, Latrobe, Ligonier, North Huntingdon, Unity Township and West Newton, Pennsylvania and also maintains a commercial business development sales force throughout its entire market area. The Company operates an asset management and trust division of Commercial Bank & Trust of PA headquartered in Greensburg, Pennsylvania. Commercial Bank & Trust of PA also serves its customer base from an Internet banking site (www.cbthebank.com) and an automated TouchTone Teller banking system.
Safe Harbor Statement
Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements are based on information currently available to the Company, and the Company assumes no obligation to update these statements as circumstances change. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including changes in general economic and financial market conditions, unforeseen credit problems, and the Company's ability to execute its business plans. The actual results of future events could differ materially from those stated in any forward-looking statements herein.
COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(Dollars in thousands, except per share data)
September 30, December 31 September 30,
2017 2016 2016
ASSETS
Cash and due from banks on demand $6,709 $5,006 $6,046
Interest bearing deposits with banks 245 8,788 11,052
--- ----- ------
Total cash and cash equivalents 6,954 13,794 17,098
Securities available for sale 180,326 128,197 135,544
Restricted investments in bank stock 1,923 111 111
----- --- ---
Loans 215,218 201,664 197,181
Allowance for loan losses (1,289) (1,318) (1,610)
Net loans 213,929 200,346 195,571
Premises and equipment 3,060 3,155 3,235
Investment in Life Insurance 19,087 18,682 18,479
Other assets 3,319 2,134 2,437
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Total assets $428,598 $366,419 $372,475
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Non-interest bearing $124,110 $118,439 $117,114
Interest bearing 193,195 191,182 191,934
------- ------- -------
Total deposits 317,305 309,621 309,048
Short-term borrowings 48,425 - -
Other liabilities 3,633 1,842 4,192
Total liabilities 369,363 311,463 313,240
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Shareholders' equity:
Common stock, par value $2 per share;
10,000,000 shares authorized;
3,600,000 shares issued; 2,860,953
shares outstanding in 2017 and 2016
7,200 7,200 7,200
Retained earnings 60,257 59,170 59,155
Accumulated other comprehensive income 4,322 1,130 5,424
Less treasury stock, at cost, 739,047
shares in 2017 and 2016 (12,544) (12,544) (12,544)
Total shareholders' equity 59,235 54,956 59,235
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Total liabilities and shareholders' equity $428,598 $366,419 $372,475
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COMMERCIAL NATIONAL FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share data)
Three Months Nine Months
Ended September 30 Ended September 30
2017 2016 2017 2016
(unaudited) (unaudited) (unaudited) (unaudited)
---------- ---------- ---------- ----------
INTEREST INCOME:
Interest and fees on loans $2,300 $2,079 $6,800 $6,054
Interest and dividends on
securities:
Taxable 1,035 562 2,712 1,830
Exempt from federal income taxes 693 692 2,049 2,442
Other 24 19 59 69
Total Interest income 4,052 3,352 11,620 10,395
INTEREST EXPENSE:
Interest on deposits 83 75 227 234
Interest on short-term borrowings 162 - 341 50
Total Interest expense 245 75 568 284
NET INTEREST INCOME 3,807 3,277 11,052 10,111
PROVISION FOR LOAN LOSSES - - - -
--- --- --- ---
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,807 3,277 11,052 10,111
----- ----- ------ ------
OTHER OPERATING INCOME:
Asset management and trust income 324 382 953 1,007
Service charges on deposit accounts 200 204 582 604
Net Security gains - - - 1,188
Loss on sale of OREO - - (6)
Income from investment in life
insurance 126 104 397 328
Other income 58 40 200 191
Total other operating income 708 730 2,126 3,318
OTHER OPERATING EXPENSES:
Salaries and employee benefits 1,785 1,773 5,297 5,542
Net occupancy expense 219 187 655 647
Furniture and equipment 86 135 269 391
Pennsylvania shares tax 128 118 378 365
Legal and professional 95 79 272 275
FDIC insurance expense 32 46 88 143
Other expenses 803 725 2,304 2,237
Total other operating expenses 3,148 3,063 9,263 9,600
INCOME BEFORE INCOME TAXES 1,367 944 3,915 3,829
Income tax expense 205 121 597 549
--- --- --- ---
Net income $1,162 $823 $3,318 $3,280
Average Shares Outstanding 2,860,953 2,860,953 2,860,953 2,860,953
Earnings Per Share $0.41 $0.29 $1.16 $1.15
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SOURCE Commercial National Financial Corporation
